Fed leaves interest rates unchanged in wake of China turmoil

The US Federal Reserve has left interest rates at 0-0.25%, citing recent global economic and financial developments [that] may restrain economic activity somewhat,” a rare reference to woes in China and other foreign markets, the Associated Press reported. In July it had seemed almost certain that the Fed would begin its cycle of rate increases in September. But China’s surprise decision to devalue its currency ignited fears that the world’s second-largest economy was weakening faster than assumed. Stocks tumbled and concerns about China’s economy led many investors to correctly predict that the Fed planned to wait.